You must register for GST if your annual turnover is $75,000 or more per annum. Turnover is the total value of taxable supplies/sales/receipts/takings made for all your taxable activities but does not include the GST charged. Any person that has been carrying on a business for less than 12 months and the average monthly value of taxable supplies was $6,250 monthly or more, is also required to register for GST.
Any person who on or after the appointed day:
1) meets or exceeds the registration limit where on the last day of any month during the period of twelve months ending on that day, the value of supplies made by the person was $75,000 dollars or more
2) there are reasonable grounds for believing that the value of the person’s supplies during the period of twelve months starting with the first day of that month will be $75,000 dollars or more
3) on the last day of any month, there are reasonable grounds for believing that the value of the person’s supplies during the period of twelve months starting on the first day of the following month will be $75,000 dollars.
4) where a person has been carrying on a business during the period of twelve months and during the lesser period, the average monthly value of the person’s taxable supplies was six thousand two hundred dollars or more.
It should be noted that every promoter of public entertainment and every licensee or proprietor of places of public entertainment must be registered even if their annual gross sales/receipts are less than $75,000.00 or monthly sales/receipts average $6,200.00.
A promoter of public entertainment is a person who arranges the staging of entertainment to which the public is invited but does not include entertainment organized by:
- an approved educational institution; or
- (ii) the board of management or a parent – teacher association of an approved education institution;
- a person who provides entertainment on a daily or weekly basis;
- or a church registered under the Charities Act.
A person who is not liable to be registered under Section 25 of the General Sales Tax Act, due to the taxable turnover being below the threshold may apply for voluntary registration. However, before applying the person must determine whether he is carrying on or intends to carry on a business and makes or intends to make supplies that would be taxable if he were registered and the Director is satisfied that 80% or more of the supplies will be made to taxable persons. Once registered output tax (tax on sales) will have to be accounted for on all taxable supplies. Also, input tax credit (tax on purchases) can only be claimed on those purchases that are directly attributable to taxable supplies.
If taxable supplies are not yet being made, but a business activity has been commenced which intends to make taxable supplies, application for registration may be made from a specific date before starting to make supplies. However, the Director must be satisfied that there is a firm intention to make taxable supplies by way of business. Thus, on completing and submitting the Application for Registration Form, written evidence must be sent to the Department showing that arrangements have been made to make supplies. This evidence can include details of proposed contracts, of stock on hand and purchase of capital assets etc. Make sure to enclose a letter with the application form giving the date from which registration is required. If unable to give a specific date as to when taxable supplies will commence, a written explanation should be given.
Taxable supply means a supply of goods or services made in the course or furtherance of a taxable activity and includes zero-rated supplies but not exempt supplies.
The GST law schedules 1,2, and 3 provides for taxable supplies at the rate of 0%.
Exempt supplies are business transaction on which GST is not chargeable at either the standard or zero-rate.
Exempt supplies are not taxable supplies and do not form part of the taxable turnover. If the business makes only exempt supplies, it is not required to register for GST.
A person registered for GST and making some exempt supplies is considered partially exempt and will not be able to get back all the input tax because the GST paid for producing exempt supplies cannot be claimed back.
Exempt supplies are listed in the Fourth and Fifth Schedule of the GST Act.
To register an Application for Registration Form (GST 100 and GST 101) needs to be filled out. This form can be obtained from any local BTS Office. If applying on behalf of a partnership or limited company the form GST101 needs to be filled out. The completed form(s), with any extra information asked should be sent to the nearest BTS Office.
Other Documentation Required for GST Registration
When you apply for GST registration, to prevent delay, it is necessary to submit copies of the relevant documents mentioned below with the Application for Registration form to the Belize Tax Service.
Company– For a company, copies of the complete incorporation documents of when the company was incorporated need to be submitted.
Sole Trader– Where a sole trader has a registered business name, a copy of the Business Names Certificate should be submitted.
Partnerships– For a partnership, a copy of the Business Names Certificate should be forwarded to the Department.
Joint Venture– Where there is a joint venture agreement, a copy of the joint venture agreement must be supplied.
The Application form for Registration should be sent in promptly as failure to notify the Department of eligibility for registration may result in accounting for tax which was not collected, payment of a fine of not less than $10,000 or 2 years imprisonment or both.
Having completed and submitted the Application form for registration, the Belize Tax Service will verify and approve all the details on the form. After which, a registration confirmation package will follow. This will include a notice of registration stating the Tax Identification Number, the effective date of Registration, the Registration Certificate (s) etc.
Look for the green GST certificate at the place of business or request that it be presented to you.